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When is a personal data processing agreement required?

A personal data processing agreement need not be concluded in each and every case – this will depend primarily on the mutual relationship between the two parties. The key is to determine whether or not one of the entities has the position of data processor in relation to the other party.
In practice, a personal data protection agreement may also be referred to as an “agreement between controller and processor” or a “processing agreement”. This agreement is concluded by a personal data controller with a data processor in order to determine the purposes and means of processing personal data – the processor then follows from these settings in its activities.
However, the situation can become very complicated in practice in cases where a supplier and customer are in the relationship of data controller and processor. Three various options, all involving different procedures, are then conceivable.
The first option is that the two entities will be in a mutual relationship of a data controller and a data processor. For example, the controller may be a school and the processor a provider of e-mail services, an external network administrator or an IT provider. In this case, a data processing agreement has to be concluded.
The second option involves a data controller and third parties that may have access to personal data and are neither a data controller nor a data processor. Their usual objects of business include work and activities that do not involve personal data processing; yet, they can occasionally gain access to such information. A processing agreement need not be concluded in this case. Nonetheless, it is recommended to enter into a contract indicating that the given entities do not engage in personal data processing. It should also be stated in the contract that each entity is bound to maintain confidentiality of data that it learns within its activity.
The third option is a mutual relationship between two controllers of personal data. These might be, for example, schools, tax authorities, travel agencies or physicians. These entities need not enter into a data processing agreement or provide for their relationships otherwise.
Please do not hesitate to contact us for more information or should you have any questions. It will be a pleasure for us to provide advice and draft specific contracts and agreements, if need be.
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Jasper Brinkman
Jasper Brinkman
"Following a devastating hotel fire in Prague, the law firm Holubová advokáti, led by attorney Klara Dvorakova, successfully represented our extended family as a group of victims. The firm navigated complex international insurance and compensation laws to defend our rights.
I would like to acknowledge the extraordinary efforts the firm had to make to bring our case to a successful compensation under extremely difficult circumstances."
Stewarts
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."